The Court of Appeal, Port Harcourt Division, has upheld the judgment of the Federal High Court, Yenagoa, which affirmed Halkin Exploration and Production Limited as the legal owner and operator of the Atala Marginal Oil Field, OML 46.

In its judgment, the appellate court dismissed the appeal filed by Bayelsa Oil Company Limited, holding that the appeal lacked merit.

Justice Mohammed Ibrahim Sirajo, JCA, who delivered the lead judgment, held that the Federal High Court was right to dismiss the suit challenging the re-award of OML 46 to Halkin E&P.

Other members of the panel were Justice I.M. Sanni, JCA, and Justice Elejo Eneche, JCA.

The court also awarded ₦1 million cost against Bayelsa Oil Company Limited in favour of the 1st, 2nd, 3rd and 4th respondents.

Bayelsa Oil Company Limited had approached the appellate court after the Federal High Court in Yenagoa, presided over by Justice Ayo Emmanuel, dismissed its suit challenging the re-award and operational rights granted to Halkin E&P over OML 46.

However, the Court of Appeal affirmed the decision of the lower court, holding that the case was statute-barred.

The appellate court further held that Bayelsa Oil Company Limited lacked the legal standing to challenge the ownership and operational rights of Halkin E&P over the marginal oil field.

Reacting to the judgment, counsel to the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Mr. Chikaosolu Ojukwu, described the decision as a victory for the upstream oil and gas sector.

He said the judgment, like the earlier ruling of the Federal High Court, reaffirmed Halkin E&P as the legal owner and operator of OML 46.

Ojukwu added that the decision also confirmed the seriousness and integrity of the bidding and re-award process conducted by the NUPRC in respect of the Atala Marginal Oil Field.

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